That says a lot about the power of the brand. Snap-on tools have been ubiquitous in car-repair shops for decades. Back in 1920 two Milwaukee factory workers came up with the idea for wrenches with 10 sockets that would "snap on" to five interchangeable handles. Snap-on (ticker: SNA) has been building its relationship with mechanics ever since: It extended credit to them in the rugged 1930s. It pioneered personal service by delivering and repairing its wares from fully stocked walk-in vans. Today there are 3,500 of these franchised vehicles traveling the U.S. and 1,300 abroad, focused solely on professionals.

That relationship also helped Snap-on get through the recent recession in better shape than many auto-related businesses. Revenue fell 17% to $2.4 billion while earnings dropped 43% to $2.32 a share in the depths of 2009, but customers returned in 2010, driving an 11% increase in revenue and a 38% rise in profits. "Our business is not recession-proof, but it is recession-resistant," says CEO Nicholas Pinchuk, a Vietnam War vet with an MBA from Harvard. He spoke with Barron's at his Kenosha, Wis., office.

Investors have taken note of Snap-on's resilience: The stock is up more than 100% since 2010.

Some analysts and portfolio managers believe there's still room for Snap-on stock to move about 20% higher. Michael Shelton, a co-portfolio manager at Milwaukee's Nicholas Company, which handles $2.7 billon, estimates that based on its average five-year multiple of about 13 times forward earnings, the stock is worth $74. In the meantime, investors collect a 2.2% dividend yield, a payout the company started in 1939.

Even after their run, Snap-on shares are cheaper than their peers', trading at 11 times Barrington Research analyst Gary Prestopino's 2013 earnings estimate, compared with an average 12.4 times for six of Snap-on's rivals.

The pricing power of Snap-on's brand is part of the stock's appeal. Repair specialists are willing to pay a premium for this family of tools because of their high quality and lifetime guarantee. A standard Snap-on flat-tip screw driver, for example, costs more than $20, a multiple of what a similar item would cost at a local retail store.

Snap-on manufactures 65,000 products, ranging from wrenches to wheel-balancing machines to electric sanders -- making it the world's biggest tool producer. It earned $3.19 a share on revenues of $2.6 billion in 2010 and $4.53 a share on revenues of $2.85 billion last year. This year earnings should hit $4.91 a share on revenues of $3 billion.

Pinchuk's Snap-on is operating in an economic environment made for repairmen. Two out of every three cars on the road today has outlived its warranty because owners are still reluctant to buy new ones. That translates into continued, stable business for Snap-on's growing customer base of independent repair facilities. "There are nearly 300 million light vehicles on the road in North America, and 45% of them are over 10 years old, and even during the recession they need repair, especially since owners tend to hold on to them rather than buy new ones," the CEO says.

Bottom Line

Snap-on shares have about 20% upside and offer a 2.2% dividend yield. The company's stellar brand has allowed it to negotiate the auto business' run of tough times.

The company has also moved into areas like aerospace, mining and power generation. "We are anticipating solid growth for Snap-on as U.S. economic conditions improve and more [of these] industries bring in repair professionals," says Morningstar analyst Richard Hilgert.

Snap-on has made acquisitions in China and in a number of European countries under Pinchuk, who headed global refrigeration operations for Carrier before joining Snap-on in 2002.

So far the CEO's strategy seems to be working. Snap-on recently reported that it had a 26% rise in profits to $1.21 a share in the first quarter, and a double-digit gain in tool sales. Analysts like Prestopino lifted their 2012 estimates as a result. Snap-on's star power rolls on.

A Lot More Miles in Them

Despite the shares' gains, they're still cheaper than most of Snap-on's rivals'.